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Sep

2

Based on XMG Global’s mid-year survey and review of the global outsourcing market and industry, offshoring and onshoring operations are estimated to reach USD464 billion in 2011, a 9.2 percent increase from 2010’s USD425 billion.

Canadian-based ICT research and advisory think-tank XMG Global indicates that the race to be the top offshoring destination continues in 2011 between China and India, as providers seek other markets outside Europe and the United States.

India will capture 42.5 percent of the offshore market. China on the other hand, will continue to lag after India, cornering only 31.5 percent of the market.

Between these two giant economies, the Philippines will still hold the third spot with 7.4 percent share of the market.

The recovering US economy is still a large market for offshoring. The report further added that Indian and Philippine providers, which are highly dependent on the US Market, feel the effects of the US dollar depreciation.

China, with a strong East Asia client base like South Korea and Japan, is less affected. The People’s Republic also has a stronger hold on its own domestic BPO market. Chinese companies outsource locally as an option to compete globally. In 2010, more than 75 percent of China’s service outsourcing revenue is from the domestic market.

Also Indian outsourcers realize the growing value of the domestic market. Tata, Infosys, Wipro, Satyam and other Indian service providers used to shun the domestic Indian market in favor of higher revenues from the US and UK but now look to diversify their client base at home.

Likewise, the Philippines takes measures to gain more of the business process outsourcing/offshoring market. The Philippine Board of Investments (BOI) would cooperate with IBM Philippines to research and implement development programs for the country’s multi-lingual talent pool.